Turkey: TRY meltdown continues

From corporate.nordea.com

The Turkish lira is in the midst of a complete meltdown with EURTRY up by more than 11% today and up more than 28% month to date as Erdogan has pulled the rug out from under investors’ confidence. The sell-off was triggered after Erdogan defended the CBRT’s controversial commitment to lower rates while inflation racing upwards. Going forward there is less room for further easing for the CBRT with the current inflation rate at 20% and the banks interest rate at 15%. The message today, however, echoes our previous hesitancy to underestimate Erdogan’s animosity to higher rates and how far he will go to push ... (full story)